Here are advantages and disadvantages to consider when deciding between private pay and insurance to cover your care.
Insurance Pros:
Reduced cost: Depending on your plan coverage, you may only have to pay a copay or a portion of the total cost of session.
Greater access: Your insurance can provide you with a directory of in-network providers.
Insurance Cons:
Limited options: Insurance companies often have a limited network of providers, making it difficult to find a therapist who is the right fit, has the same availability as you, and is able to treat your concerns.
Privacy concerns: When using insurance to pay for therapy, your personal information will be disclosed to your insurance company.
Diagnosis: Insurance companies require a mental health diagnosis to cover therapy sessions, which can be stigmatizing and potentially impact future insurance coverage, including life insurance.
Private Pay Pros:
Increased flexibility: There is usually greater flexibility in scheduling, session length, and treatment options to meet your needs.
Increased privacy: There is no third party disclosures about diagnoses or personal information.
Greater choice of therapists: You are able to choose any licensed therapist you wish rather than being limited to in-network providers. This can increase the likelihood of finding a therapist who is a good fit.
No diagnosis required: Unlike insurance, private pay does not require a mental health diagnosis in order to receive treatment. This can be beneficial for clients who may be concerned about stigmatization or future insurance coverage.
Private Pay Cons:
Cost: Paying out of pocket for therapy can be expensive, especially if therapy is needed over a long period of time.
No insurance reimbursement: Clients who pay out of pocket for therapy are not always eligible for reimbursement from their insurance company and claims can be denied.